Leasing

AMD

Currency

300.000-20.000.000

Loan Amount

10-17 %

Nominal Interest Rate

10.47 - 24.73%

Actual interest rate

6-72 Month

Loan maturity

USD

Currency

600-40.000

Loan Amount

11-16

Nominal Interest Rate

11.57 - 23.50%

Actual interest rate

6-72 Month

Loan maturity

Target group  applications for leasing are accepted by “Farm Credit Armenia” UCO CC from private individuals and legal entities engaged in agriculture in the regions of the RA, who are members of “Farm Credit Armenia” cooperative. Member-stockholders of the cooperative can be private individuals and legal entities engaged in agricultural production, processing of agricultural products, and other related activities, commercial, industrial or other business.

In particular cases the leasing can be provided to the non-members of the cooperative according to the committee decision.

The following plant, property and equipment that are sold in the primary market can be subject to leasing:

-         Agricultural equipment

-         Manufacturing production-lines and equipment

-         Construction equipment

-         Motor transport

-         Other property, plant and equipment

The prepayment for leasing can form the 0-50% of the lease object value depending on the solvency of the applicant.

After the end of the lease contract the lessee has the opportunity to obtain the lease object as his/her property with the price of 1% of the leasing value. The interest rates are calculated in respect of the lease amount actual balance with a nominal interest rate, considering the year as 365 days. The leasing transaction with the funds of MCA-Armenia are signed in condition of a positive conclusion by the fund.


Loan interest and mulcts calculation example

The interest accrued to the loans is calculated towards the actual balance of the loan, at nominal interest rate, assuming that a year consists of 365 days.

 

Example of loan interest calculation

 

Annual interest amount = balance of the loan amount x annual interest rate /365

Example:

Balance of the loan amount – AMD 2,000,000

Annual interest rate of the loan - 14%

Daily interest amount = 2,000,000 x 14 %/365 = 767.12

The annual actual interest rate shows the cost of the loan for you in case if you pay the interest amount and make other payments according to the specified schedule and sizes.

 

Size of penalties - In case of delays in repayment of the loan interest or principal amount, the client pays penalty of 0.3% of the overdue amount (overdue principal amount and overdue interest amount of the loan) for each day of delay, until the 270th successive day of being overdue. Starting from the 271st successive day of being overdue, calculation of penalties ceases.

Possibility of early repayment – The client may repay the loan before the deadline specified in the agreement. Except if the loan is disbursed with the funds provided by the MCA Armenia Foundation, as well as, irrespective of the fund, except for agricultural loans with an amount up to AMD 2 million and its equivalent in foreign currency, when repaying the loan in full, the borrower pays penalty for early payment, in the size specified by the tariffs.

In case of agricultural loans disbursed with the funds provided by the MCA Armenia Foundation, as well as, irrespective of the fund, in case of agricultural loans with an amount up to AMD 2 million and its equivalent in foreign currency, no penalty for early payment of loans is charged.

Repayment frequency

Depending on the customer’s cash flow monthly equal repayments, equal principal repayments, quarterly or 6 month periods of repayments can be defined.

Collateral

Security - Collateral, guarantee.

The following can be accepted as collateral items:

-         real estate (production areas, buildings, houses, apartments, land plots, fish ponds, gardens, and other real estate);
-         vehicles – passenger cars and trucks;
-         agricultural machinery;
-         construction machinery;
-         production lines, equipment;
-         large and small cattle, sows.

The agreement for pledge of real estate is subject to notarial verification. 
The right of pledge for real estate and vehicles is subject to state registration.

The loan to collateral ratio cannot exceed 80%.

The guarantor should possess property or a share in any immovable property that belongs to him/her through the ownership right or should be a legitimate employee of any state or international organization operating in the RA, well-known in the business environment and having good reputation, or should be a CO client, with the CO having financial analysis regarding the client’s solvency, performed not more than 6 months before.

Other fees

Membership fee of the cooperating – AMD 3,000 (paid once)
Equity participation fee – 1.5 % of the loan amount but not more than AMD 240,000 for each loan (paid when receiving each loan).

The above-mentioned amounts are recorded as the cooperative member’s stockholding in the equity capital of the cooperative.
Other payments are defined by the tariffs of “Farm Credit Armenia” UCO CC.



Pledge of real estate


1. reference on restrictions 10,000 AMD 
2. notarial verification  10,000 – 20,000 AMD
3. state registration  27,000 AMD


Pledge of vehicles


1. reference on restrictions 3,000 AMD
2. state registration 3,000 AMD


Pledge of other movable property


1. state registration 2,000 AMD

 

Loan application approval

Leasing Application Confirmation

The decision on leasing application is made within 15 days after receiving the application. The customer is informed about that on the same day.

 

Factors for Confirming the Leasing Application

-   presence of actual activity in the regions of RA

-   correspondence to the requirements of financing programs and funds

-   correspondence of paying capacity to the requirements defined by the company

 

 

Factors for Rejecting the Leasing Application

The applicants who do not meet the above mentioned requirements for leasing or when the solvency of the applicant is not sufficient, the applicants cannot use the lease services provided by the company.

Upon the applicant’s wish the company can present a written rejection letter.

 

 

Documents Required for Leasing:

For legal entities:

-   Copy of the state registry certificate

-   Copy of the company foundation contract

-   Copy of the company legislation

-   Financial statements

-   Founders’ decision on pledging the company property

-   Copies of property certificates

-   Statement from the order of appointment of the director or the order copy

-   Copy of the director’s identification document

-   In case of pledging equipment, the passports of those

-   In case of pledging vehicles, copies of their technical passports

 

For physical entities:

-  Leasing application

-  Identification document, social security card/public service identification number or a statement of its absence

-  Documents stating property of the pledge as an additional liability

-  In case of pledging equipment, the passports of those

-  In case of pledging vehicles, copies of their technical passports

-  Statements of income (salary, etc.)

Loan Calculator

The result is not final, as it is calculated individually.
  • Loan amount
  • Nominal interest rate
  • Loan maturity (month)
Attention

In case of non-purposeful use of the loan extended by MCA-Armenia Water to Market lending project resources the creditor has the right to review the loan nominal interest rate up to 20% annually in accordance with loan agreement.

 

The organization may review the current interest rate in case of changes of 2 and more percentage points of RA CB defined refinancing interest rate but no more than the doubling of CBA bank rate at present moment.


The customer can repay the loan before the date set in the contract. In case of full repayment of the loan, the borrower pays the positive difference of the interest rate paid when fully repaying the loan and the interest rate of the 90 days stated in the contract (with the exception of the loans financed by MCA-Armenia Water to Market lending project). 
In case of repayment of the loans financed by MCA-Armenia Water to Market lending project, the borrower pays the interest rate factually calculated at the time of loan repayment.

 

The loans provided by means of MCA-Armenia Water to Market lending project are extended only in case of affirmative conclusion.

YOUR PROPERTY (apartment, car, etc.) MAY BE CONFISCATED IN CASE YOU DO NOT EFFECT THE REPAYMENT OF LOAN AMOUNT AND INTEREST AMOUNTS IN TIME.
IN CASE YOU DO NOT IMPLEMENT LENDING  PAYMENTS AND INTEREST AMOUNTS IN TIME THE INFORMATION ABOUT YOU WILL GO TO CREDIT REGISTRY.

 

In case of non-performance of obligations for the repayment of credit expenses (at the expense of the amount obtained from the realization of collateral), the obligation may be redeemed at the expense of lessee’s other property.